Rosatom, DP World, Partners Eye Arctic Freight Traffic Rise
- Business & Finance
Rosatom, DP World, Norilsk Nickel and Russian Direct Investment Fund have agreed to explore the joint development of the Northern Sea Route (NSR).
Under the deal, signed of June 6, 2019, the parties plan to design and construct an additional ice-class fleet and icebreakers, as well as port infrastructure as they said that the contract covers determining the amount of funding needed for these works.
The quadrilateral agreement of intent outlines a comprehensive piece of work which will study of the most effective commercial options for the use of the NSR. A strategic partnership in the form of a joint venture for the development of transit cargo traffic through the NSR would be developed. The key objective of the project is to increase the volume of freight traffic through the NSR and the Arctic zone of the Russian Federation.
During the first stage, the parties will have to develop a strategy to increase the efficiency of the use of the NSR and to determine ways of developing transit traffic, while focusing on linear transportation of containers and other bulk cargo along the route.
Additionally, a joint working group would be established to conduct an analysis and prepare a feasibility study for the project within six months. Subject to this work being completed a next stage decision will be made on the further development of the project.
Today I signed a JV with @RosatomGlobal, @Norilsk_Nickel and @rdif_press. We are working together to develop transit cargo traffic through the Northern Sea Routes. We aim to increase the volume of freight traffic through the NSR and the Arctic zone of the Russian Federation. 1/3 pic.twitter.com/oIJJwQ8HYh
— Sultan Ahmed Bin Sulayem (@ssulayem) June 6, 2019